GCE Economics 2023 Objective — Question 21
Question 21 of 50 from the General Certificate of Education (GCE) Economics 2023 Objective paper, with the correct answer and a full explanation.
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The average revenue curve of a firm in a perfect market is the same as the
- A. supply curve of the firm
- B. demand curve of the firmCorrect
- C. total revenue curve of the firm
- D. average cost curve of the firm
Explanation
In a perfectly competitive market, a firm is a price taker with a perfectly elastic demand curve, which coincides with its average revenue (and marginal revenue) curve, i.e. D = AR = MR.
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